Cash. It’s an integral part of an overall savings and investing plan. There are plenty of reasons why you should have some money on hand and in your portfolios. That includes everything from waiting for new opportunities to helping reduce volatility. However, these days investors might be holding a tad bit too much cash.
Try more than half of their entire investable assets.
That’s a huge problem. And according to investment firm BlackRock, it’s costing investors a lot of gains and purchasing power. But luckily, the damage isn’t permanent. It’s fixable with a few easy changes to your portfolios.
Check out our new compounding returns calculator.
More Than Half
Despite the recent surge in cryptocurrencies, investors still like good ol’ fashioned greenbacks the best. And as such, interest in money market funds, CDs and other cash-related investments are still the top draw for many portfolios. The problem is that investors might be still leaning on these investments too heavily.
